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Updated over 7 years ago,

User Stats

43
Posts
6
Votes
Christian Hall
  • Lender
  • Grand Haven, MI
6
Votes |
43
Posts

How should I align my offset lease terms?

Christian Hall
  • Lender
  • Grand Haven, MI
Posted

Hi BP. Looking for some pro tips on the following situation:

I purchased a 3 bed single family home last year. I lived in one bedroom and rented out the other two (yay for house hacking). I moved out and filled my spot with another tenant which is great! I'm just in an interesting multiple lease term situation. Each of the tenants are on their own room rental lease agreement and they all pay separately. This worked great when I occupied the property, but now it's becoming bit of a headache with the timeline. I've made up names to protect identities. But here's what it looks like:

Bedroom 1: Occupied by Evan. Lease ends Aug 6, 2017. Evan will be vacating and I'll find another tenant. 
Bedroom 2: Occupied by Mark. Lease ends Aug 6, 2017. Mark plans to stay and sign another year.
Bedroom 3: occupied by me from July 2016-April 2017. It is now occupied by Darren who was only able to sign a 6-month lease May-November 2017. Darren plans to leave once his lease ends. 

See where this becomes messy? I'm juggling multiple leases for the same property that will all end on different dates. Doing so allowed me to temporarily get occupancy up to 100% which is great, but it's becoming a little trickier than I imagined.

Does anyone have any tips on transitioning out of a house hack? There could be a point where I'm renting 3 bedrooms to 3 strangers in the same house. That could work! But I'm looking for a simpler solution if possible. One family on one lease would be so ideal haha.

Here's what I'm thinking so far:

Option 1: Continue to rent out 3 bedrooms to 3 strangers on different lease terms. 

Option 2: Have all new signed leases end Nov 2017 and sync up all the terms, only allowing tenants to sign 12 month leases from here on out so all leases end at the same time. Less flexibility for tenants but less headache for me.

Option 3: Have all new signed leases end Nov 2017 and sync up all the terms. Tell Mark (who plans to stay long term) that after Nov 2017 I plan to have one lease for the property in his name and it is his responsibility to find roommates. Not ideal for Mark, but he may be open to it.

Thoughts?

Thanks BP!

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